Tractor treads fail to pull farmers out of debt in Punjab

Dealers say average sales at the market have slumped to 20 per week, from 200-250 per week six months ago. They say the situation is the same at the old tractor markets in Barnala, Kotkapura and Moga, with each of them just having 15-20 deals per week.Agencies | November 20, 2015, 08:07 IST

BATHINDA: Severe farm crisis in Punjab has not only hit farmers, but also cast a spell on the sale of farm machinery. Resale of old tractors has witnessed a sharp fall in a matter of six months.

Small farmers and tractor dealers wanting to sell old machinery are facing difficulties in finding buyers.

Spread over seven acres, the old tractors' market at Talwandi Sabo, Bathinda district, is one of the biggest in Punjab for buying used farm machinery. Farmers from Haryana and Rajasthan also converge here.

Dealers say average sales at the market have slumped to 20 per week, from 200-250 per week six months ago.

They say the situation is the same at the old tractor markets in Barnala, Kotkapura and Moga, with each of them just having 15-20 deals per week.

"Earlier, only dealers used to come to the market to earn money by brokering deals. Now, with farm crisis looming large, small farmers are also coming to the market to sell off tractors and other implements, but are returning empty-handed due to lack of buyers," said tractor dealer Subeg Singh at Talwandi Sabo.

Another dealer, Labh Singh from Kotha Guru village of Bathinda, said, "Sales have come down to 20-25 deals per week from over 200 deals till 6-7 months ago."

"Gurdwara committees which own the stretches of land where the Talwandi Sabo market is held, had allotted nearly 80 plots for rates ranging from Rs 40,000 to Rs 60,000 per plot for a year. It seems we will not be able to recover even the lease money as business has slumped drastically," said another dealer, Gurmel Singh.

Hit hard by crop failure due to pest attack and dwindling yields, many marginal and small farmers are unable to earn enough to recover their input costs and make some profit. Worried over mounting debt, many of them are forced to sell of their farm machinery, especially tractors.

Ranjit Singh (50), a farmer from Phoosmandi village of Bathinda, had gone to Talwandi Sabo to sell his 1999-model tractor, but got no buyers.

"This time, I got only seven quintals of raw cotton from four acres; it is less than one-fourth of the average yield I used to get till last year. My cotton crop was devoured by whitefly this year. I am unable to repay the installment of a Rs 4 lakh loan to the bank. With meager income, I am left with no other option but to sell my old tractor. I hoped to sell my tractor for Rs 1 lakh, but there are no buyers," he said with disappointment writ large over his wrinkled face.

Earlier, only dealers used to come to the market to earn money by brokering deals. Now, with farm crisis looming large, small farmers are also coming to the market to sell off tractors and other implements.

With barely two acres, Kewal Singh (40), a small farmer from Sema village near Bathinda's Bhucho Mandi, also wanted to sell his 20-year-old tractor to repay his debt, but did not find buyers.

"I need to repay my debt and run the household. After failing to come out of a precarious economic condition due to crop failure, I decided to sell my old Eicher tractor," said Surinder Singh, from Sangat village who owns three acres.

As per state cooperative department officials, more than 40% tractor-owners who visit Talwandi Sabo market for sale of farm machinery are small and marginal farmers.

Noted economist and Central University of Punjab chancellor Professor Sardara Singh Johl said farmers resorted to distress sale of machinery when they had crop failure. "As this year the crop failure is far severe, farmers have been left with no option but to sell tractors to tide over the crisis," said Johl.

Another economist, Prof Sucha Singh Gill who is attached with Chandigarh-based Centre for Research in Rural and Industrial Development (CRRID), said, "This year's crisis is very serious, and will have far-reaching consequences in Punjab. The sale of agriculture implements, especially tractors, points towards it. The distress sale also shows the crippling agriculture scenario in Punjab. This crisis will force farmers to go in for custom hiring of farm machinery, which may become a costly affair and force small and marginal peasants out of farming. The situation will severely affect education and healthcare. The government needs to look into the farm crisis and take corrective measures."

Kesar Singh Bhangu, senior economist at Punjabi University, Patiala, said, "The trend of selling agriculture implements will have a long-term impact on farming as the trend will turn small and marginal farmers into farm labourers and take up other petty vocations. They need some government support to sustain, else they will end up doing petty jobs or pushed to committing suicides. Farm economy will suffer on that account."